Visaka, one of our multi-bagger

Housing for all scheme by the Government is a positive for the economy in various manners. 4 Crore houses to be build by 2022, the creation itself will bring huge business opportunities for the Cement, Steel and home construction goods manufacturers. Once the houses are ready, the occupants will need to have the basic necessities to run their homes, utensils, durable’s, furnishing etc., these businesses will flourish.

In line with this thought, our investment in Visaka Industries, a company that manufactures sheets for houses as well as other home construction accessories. We purchased this stock when it came in our research ranking table in the month of January 2017 at a price of ₹190 per share. It is 8 months since we are holding this stock, apart from the dividend of r₹6 per share, the current price of the stock is ₹672.00. An appreciation of ₹482 or 250% growth in 8 months.

One of the Multi-baggers in our portfolio…..

 

India – The world’s investment destination.

SwachhBharath

The other day I was in the Millionaire Mind intensive seminar by Harv Eker. It was a 3 day intensive course on how to become a billionaire by taking away all the blocks in our mind. It was an impressive program. The learning for me was when Harv, told about the potential India has as an investment destination. The following is his words, ‘Your prime minister has been admired by the world, he has been called by other countries to take the opportunity of growth by either participating or investing. Not many leaders get such an opportunity, which means India is the world’s destination for investment. He has already been to the US, UK, recently to Australia and more to come very soon. All his thoughts are positive, I travelled through your country in the past weeks and I could witness people have only positive aspirations. For the next 10-15 years India is the place to make big money, your markets are going to roar. Being here in India, living in India at this part of its great journey, if you are not capitalizing on the potential, God, only God can give you another such opportunity. Take the opportunity, be invested, you will feel proud that you took the right decision when you look back to 2014 from 2019. If you wait for more confirmation, you will only be staring on a lost opportunity.”

Everything said in few minutes, I was very happy listening to this conversation, my judgement too was the same, India will all it glorious development in the next 5 years. Why is it so? What is so euphoric?

One by one if we look at the external situation

There is able administration, who are willing to take fast decisions.

Crude oilCrude Oil is a story that is next to over now, producing countries are no more waiting for their leader to hold production and dictate price, they are scrambling to get their maximum share in whatever they could sell at available price. It has become a buyers’ market, no more a sellers’ market. Something our generation has not experienced so far. No more new high’s possible in crude oil, it has begun the other part of the journey on its bell curve.

Very good rains this year, many of our dams are full. Many governments are planning to construct new dams. So, crops are going to be very good in the coming years.

1 trillion of investments coming into India from the International markets, this will bring many new businesses to India and so much employment opportunity.

Make-In-IndiaLogo650

Make in India, drive is going to add more value to our products and this means higher profits.

Swach Bharath drive is going to make our country crisp and clean, this is a great opportunity. A person wanting to open a window cleaning company can make billions, take our railways for example, it is so dirty that one company can run exclusively to do the cleaning business. As I write this I am travelling in the train from Salem to Bangalore. Like this if we look for cleaning opportunities as a business there are plenty.

More number of businesses and more employment means, people have more money to spend and all that money will circulate into the economy making people more and more rich.

Waking up infrastructure projects will ensure that we have more and better road networks which will make real estate accessible. This should ease out pressure on cities with growing population influx.

Infrastructure growth means big business opportunity for Cement and Steel companies, their businesses are going to soar.

There are a lot more that will be unfolding as days pass by.

 

Wireless is a boon to battery companies…..

I invested in Eveready Industries in the month of June 2014 after the stock came into our ranking tables. The ranking table measures a stocks earnings and its stock price against  a group of stocks and ranks them. We invest in those stocks that have both their earnings(EPS) and price (PRS) above 80. At that time the stock price was ₹. 45.00. At the price, the stock’s chart was showing pretty high strength, it has a good run up I price. I normally don’t buy into a stock that has already run up. Now, the decision has changed, I had committed myself that I will follow the system without second guessing or judgement.

Eveready

After I bought the stock it was going higher and higher. By September it crossed the 100 mark.

BatteryAABy the end of November 2014, it has reached 195.00, has given 350% profit on our investment in 5 months period. September quarter results came out and the performance was stronger, but, still was not in a position to give a growth signal, which we consider when a stock gives 25% plus growth in its sales as well as its earnings in comparison with the same quarter of the previous year.

One day when I had asked my son to buy batteries for the mouse and keyboards at home. He bought 6 nos, stating that, we need that much as it is used in the clocks, remotes, keyboards and mouse. This made me think, if we are consuming so much, it would be the same to others around the country too. With the world going wireless, usage of batteries has at least multiplied 3 times. And this is  going to increase going forward. A reason enough for Eveready to sky rocket in its sales and earnings. Eveready has been the leader in this industry segment, when we think of batteries we only think of ‘EVEREADY’, it has become a ‘XEROX’ for copy machines. This means, there is a very high potential for this stock to give us 1000% profits along with some fancy dividends. The beauty is that, all of this profit will be tax free, as the period it would take to hold on to this growth is going to be above 365 days. What a nice choice to be invested in Equities.

This incidence also made me think, if I can search such kind of supporting thoughts to find companies that have the highest potential to growth, the returns on my investments will be triple digit year-on-year.